Oversold Situation Must Still Be Resolved By Dick Arms About this article: The traumatic swings of the last few days, and, in fact, of the last two months, grab the headlines, and make one think that we are having a big market move. The reality is that we have been in a broad sideways action since early October, as can be seen on the chart below. Thursday, we moved below the lows of that range. This is certainly a disconcerting development. In the process, there were a great number of swings in both directions. There were six distinct advances or declines of 200 Dow points or more during the day. In spite of the lower low, this looks like extremely nervous trading in the vicinity of the Oct. 10 lows. We continue to see extremely oversold levels in most of our indicators. The second chart below shows the shorter-term Arms Index numbers, which continue to be very oversold. Moreover,... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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